Trump win sees dollar and pound strengthen – Y Report

Last week’s shock election of Donald Trump as the next US president saw both the dollar and pound strengthen significantly.

This was the opposite effect analysts predicted it would have, according to Inenco’s Y Report.

It has also resulted in a weakening of commodity prices.

Elsewhere, oil production has increased as a result of Iran adding three new oil fields and the US rig count continuing to climb.

Energy Trader Rebecca Hermolle said nearer term fundamentals are slightly more uncertain, with temperatures forecast to fall below seasonal normal levels towards the end of November. This is likely to increase demand for gas and power.

Rough storage withdrawals are expected to return later this month although this has not yet been confirmed.

Ms Hermolle added there is a lot of volatility in the prompt market, with ongoing French nuclear outages affecting the day-ahead power market. Across the near curve, prices are “relatively flat as fundamentals remain uncertain”.

She went on: “For those of you with fixed priced contracts, you could look at holding as the market remains in a short term downtrend.

“However, if the market does change and we see this downtrend reverse, I would look at hedging. For those of you with flexible contracts, I would look at holding while the market remains in a downtrend, however if the market does show signs of reversing that trend, you could look at hedging.”